The federal government of Pakistan has set up three subcommittees to determine the future of cryptocurrency and related businesses in the country. This was reported by the Express Tribune on Tuesday, citing documents it has seen.
Specialized subcommittees formed
During a meeting, the subcommittees were formed to decide whether the activities surrounding cryptocurrencies should be legalized or banned. The subcommittees will review all aspects of the cryptocurrency market, as well as make recommendations on the country’s crypto policies.
The proposals will then be sent to a committee headed by the Finance Minister, Hamed Yagoob Sheikh. The first subcommittee was formed under the chairmanship of the Pakistan Secretary of State. The State Bank of Pakistan (SBP), the Federal Investigation Agency (FIA) and the Pakistan Telecommunication Authority (PTA) are among the members of this subcommittee.
Ban or no ban
The committee will consider whether cryptocurrencies can be banned under current laws. In addition, it will recommend methods that can be used to ban crypto while maintaining a balance between well-being and technological progress.
The other two subcommittees were set up under the chairmanship of SBP Vice Governor Saima Kamal. The Securities and Exchange Commission of Pakistan, the PTA and representatives of the Ministry of Information Technology are the members of these subcommittees.
Their recommendations will be based on imposing an immediate ban on cryptocurrency and its implications going forward. They will also discuss whether Pakistan would lag behind other countries in the race for technological progress if cryptocurrencies were banned in the country.
State bank against crypto
For a long time, the State Bank of Pakistan has taken a stance as anti-crypto. Reza Baqir, the SBP governor, said in March that there is a lot of abuse of cryptocurrencies around the world. This, he says, includes human rights violations, human trafficking, money laundering and “many other things”.
In February, he noted that the potential risk associated with cryptocurrencies far outweighs the benefits. It was reported that in last January, the Federal Investigation Agency (FIA) asked the Pakistan Telecommunication Authority to ban over 1,600 crypto websites.